The state’s prepaid college tuition is no longer underfunded, and has fully recovered from the recession.
The Guaranteed Education Tuition Plan, or GET, as it’s known, now has enough money to meet all of its financial obligations, State Actuary Matt Smith said Thursday during a meeting of the GET committee.
It’s the first time since the beginning of the recession, in 2008, that the program has been funded above 100 percent. The fund is now valued at $2.93 billion, a $371 million increase since the same time last year, and its funded status is 106 percent — meaning it has more than enough money to cover all of its obligations.
The program — which allows parents to pay for college tuition in advance — was underfunded throughout the recession, largely of unexpectedly large tuition hikes but also because of the plunge in stock values. At one point, when the program had an unfunded liability of $631 million, state legislators mulled shutting it down.
In 2013, state legislators froze in-state tuition for two years. That has helped GET catch up; so, too, has a booming stock market, Smith said.